Iran War Disrupts Egypt's Energy Imports, Triggers Economic Turbulence

The war in Iran triggered economic repercussions across the Middle East, with Egypt among the most vulnerable despite not being a direct participant.

“Talaat Harb, in the very heart of Cairo, is one of the busiest commercial arteries in the capital of Egypt”

El País

Egypt depends heavily on energy supplies from the region, using natural gas to generate around 70% of its electricity.

El País

The government imposed early closing hours on non-essential businesses, with shops and restaurants shuttering as early as 21:00.

Fuel subsidies were cut and prices raised by 15% to 22%, while electricity tariffs increased for high-consumption households.

The Egyptian pound fell to historic lows, depreciating from around 48 to nearly 52 against the dollar.

Economist Sherif Sami said the Egyptian economy has shown a degree of resilience.

Egypt has taken measures beyond early business closures to manage the energy crisis.

The government decided to slow down megaprojects that consume a lot of fuel for at least two months.

Orient XXI

Remote work was decreed every Sunday in April in both the public and private sectors.

Fuel allocation to government vehicles was cut by 30%.

Metro ticket prices were increased by 20% to 25%.

The government has so far avoided cutting bread subsidies.

Egypt's diplomatic position has been complex.

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Iram Biznis

Cairo has been trying to play mediator to end the war while condemning Iran's bombardment of its Arab brothers.

Foreign Minister Badr Abdelatty toured the region, and President Abdel Fattah al-Sissi visited Gulf states.

The government's position was deemed too half-hearted and not sufficiently supportive of its Gulf neighbors.

Egypt displays messages of solidarity because it has no alternative, in particular financially.

Relations between Egypt and Iran had become slightly warmer in 2024.